What is an asic (ASIC) for cryptocurrency mining

In 2012, ASIC-based technology was introduced. These devices instantly supplanted FPGAs because they do not require software customization.

In 2013, Bitmain released the first ASIC – Antminer S1. The hash rate of the equipment reached a record at the time of 180 GH/s. Within six months, they developed the next model – Antminer S2. Its hashing speed was already 1 TH/s. Thus, each new device of the manufacturer became more powerful and energy efficient than previous generations.

In 2014, Bitmain created AntPool – a pool for combining large hash capacities. Later, another similar resource was launched – BTC.com.

All the following years, the manufacturer continued to release new Antminer models. In 2019, the revenue from BTC mining reached 5 billion. Such figures, despite the volatile development of the industry, contributed to a strong increase in demand for systems for cryptocurrency mining. At the same time, Bitmain released the Antminer S17, which is still relevant today.

As of 2022, the latest series of devices is the Antminer S19. The S19 Pro has a hash rate of 110 TH/s and costs up to $10,000. Also due out in the summer of 2022 is the S19 XP with a hash rate of 140 TH/s and a price tag of over $13,000.

What types there are

All ASICs fall into three categories by purpose:

• Compact. These are USB ASIC-Miner type devices that are inefficient. They are more suitable as a gift for a crypto-enthusiast or for familiarization with mining on asics. There are flash miners such as Bitmain Antrouter R1-LTC or GekkoScience 2PAC BM1384 on sale. They cost in the range of 100 dollars.
• Consumer. This is equipment with average technical characteristics, consuming up to 600-800 watts. Their hash rate is not high. Examples include Baikal-X or Antminer L3++.
• Industrial. These asics are more common than others. They have built-in cooling systems and power supplies with a capacity of over 1 kW. They have maximum performance, but they consume a lot of power. For example, with a power of 1000 W, one device per month with round-the-clock operation will consume 720 kW.

Manufacturers

There are more than 30 manufacturers of asics in the world, but not all of them are in demand. The most reliable and well-known suppliers of this equipment are the following:

• Bitmain. A Chinese company founded in 2013. Very quickly it rose to the top positions in its segment. The devices of this manufacturer occupy about 70% of the market of mining equipment.
• Canaan Creative. This Chinese brand also appeared in 2013. In terms of production volume, it ranks second – it covers about 20% of the industry. The company produces Avalon Miner devices. One of the latest models is the Avalon A1066I. With a power consumption of 3.4 kW, it produces a hash rate of 50 TH/s.
• Ebang Communication. The company stands in the third place in terms of production of equipment for mining digital currencies. It has been operating since 2010, but at first it specialized in telecommunications. In 2016, the type of activity changed to the production of chips and mining equipment. The brand’s fresh model is the Ebit E12+. Having a power consumption of 2.5 kW, it produces a hash rate of 50 TH/s.
• Bitfury. Develops technologies to improve chips for cryptocurrency mining. It supplies components to well-known mining companies and produces industrial ASICs. Among the new products is Bitfury Clarke chip for Bitfury Tardis asic with a maximum hash rate of 80 TH/s at 6.3 kW.

The principle of operation of the asic for mining

To understand how an asic miner works, it is better to consider the principle of its operation on the example of Bitcoin mining:

1. An ASIC connected to the Bitcoin network solves a complex computational problem to find the next block.
2. The first miner to find a solution will receive rewards and transaction fees.
3. Each new block is created in an average of 10 minutes. The reward is 6.25 BTC.

Owners of mining farms and asics with a performance of more than 4 TH/s are competing for this reward. Once the hash is guessed, the block is closed and a new node is created.

When working in a pool, the reward is divided between all participants according to the capacity of their equipment.

The principle of operation of asics for cryptocurrency mining is similar to torrent trackers. They ensure the functioning of the system by distributing music, movies and other files that are available to other users.

When mining cryptocurrency, miners provide the operation of the system. They maintain the blockchain network, conduct transactions and store the algorithm. Users of torrent trackers receive at best a rating, and cryptominers for their services – money.

Differences from GPU

ASIC and GPU are united only by the fact that both devices mine cryptocurrencies. The differences between them are much more:

• Efficiency. With equal power consumption, asics produce 1.5-2 times higher hash rate.
• Size. A farm of video cards is a rather bulky device, while an asic of similar performance is half or even three times smaller.
• Noise. GPU-based equipment operates from ordinary computer power supplies, which function much quieter than most ASICs.
• Heating. Video cards generate more heat and require serious cooling – their operating temperature reaches 90 degrees. Asics also get warm (up to 70-80 degrees), but the ventilation built into their cases is quite enough to maintain normal operating temperature.
• Versatility. The farm of GPUs can be disassembled at any time and use video cards to assemble gaming computers. ASIC for mining is arranged in such a way that only cryptocurrencies are mined with its help. It does not cope with other tasks.
• Customization. GPU-farm requires fine tuning. A beginner will have to figure out a lot of things on his own or pay a specialist for services. ASIC is easy to use. It needs to be connected, enter the pool and wallet, and it will start working.
• Upgrade. A farm of GPUs can be upgraded by adding video cards. An ASIC is a complete device in its own right and cannot be upgraded.
• Repairability. Graphics card farms are repairable. Components can be taken to a computer service, where they will be repaired. In the case of asics everything is more complicated – they are not repaired en masse yet.

What cryptocurrencies can be mined

ASICs are chosen for a specific algorithm, on which cryptocurrency mining works. The three most popular are:

• SHA-256. The most common algorithm, under which the first asics were created. Bitcoin, Bitcoin Cash, Bitcoin SV work on it.
• Scrypt. This algorithm is based on the secure function of key generation with a password. It requires more memory to search for blocks. Litecoin, Dogecoin, BitConnect work on the algorithm.
• X11. It was first proposed at the launch of the Dash blockchain. The algorithm has 11 hashing functions, which is why it got its name. Blockchains of such cryptocurrencies as Onix, Pura, BitSend work on X11.

Most often asics mine BTC, LTC or DOGE. For other coins, it is better to use farms of video cards.

Profitability of asics and their prices

Profit from these devices depends on the market value of cryptocurrencies. Among the popular asics in 2021 and 2022 is the Bitmain Antminer S19 Pro with a performance of 110 TH/s. This is a powerful and energy-efficient unit that provides a profit of about $1000 at an electricity cost of 5 cents per 1 kW and a BTC exchange rate in the neighborhood of $35-40 thousand. On message boards, these systems are sold at a price of about 1 million rubles.

Canaan Avalon A1246 is another interesting device with a hash rate of 85 TH/s. In Russia, it is in less demand than Antminer S19 Pro, but it costs almost half as much. At an electricity cost of 5 cents per 1 kW, you can earn up to $700-750 per month.

At a BTC exchange rate of $40,000, the payback of Bitmain Antminer S19 Pro and Canaan Avalon A1246 does not exceed 9-12 months.

There is also an even less popular Whatsminer M30S. He, too, costs about 1 million rubles and brings profit up to 1000-1100 dollars per month.

Features of used asics

In performance, used equipment is not inferior to new devices, and due to the lower price it pays off faster. But there is a downside in the form of problems: inefficient cooling, reduced hash rate and periodic breakdowns. In general, buying a used asic is a risky endeavor. The equipment may fail before it even pays off, not to mention the profit.

Manufacturers rarely give a warranty on new devices for more than three months. In the case of second-hand systems that have worked even longer, the user is highly likely to face some kind of repair.

Table with hash rate and prices

Users who mine cryptocurrency with the help of ASICs, try to choose proven models.

Connection and configuration

The equipment must be properly connected and configured. Otherwise, its efficiency will be lower than nominal, it will take longer for the whole system to pay for itself.

Is it possible to assemble ASIC by yourself

It is possible to assemble this complex device on your own, but this requires special skills. It is necessary to understand electronics and programming. At the heart of the system is an integrated circuit board, which is created according to the following algorithm:

1. Preparatory stage. It is necessary to thoroughly understand the mechanism of operation of the equipment. You need schematics of the device and understanding of the basics of interaction between the elements of the board. Performance is calculated, temperature graphs are built and all other parameters are calculated.
2. Buying components. It is necessary to find spare parts that will withstand the load imposed on them.
3. Creating the board. Here you will need knowledge of electronics and soldering skills. After creating the board must be tested and debugged.

Do not expect that a homemade ASIC-miner will justify itself. Most likely, it will be wasted resources.

Advantages and disadvantages of ASICs for mining

Compared to GPU farms, ASIC-miners have pluses:

• They are independent devices that do not require additional components.
• Quickly set up and start generating income.
• Have higher performance with the same power consumption compared to video cards.
• Rarely require software updates.
• Energy efficient.
• Pay off relatively quickly.

Not without disadvantages:

• Asics are narrowly focused devices created only for mining.
• Powerful units need a separate power supply.
• Noisy operation and high heat dissipation.
• Rapid obsolescence against the background of the release of new models.
• High starting price.

Summary

Buying an ASIC miner in 2022 is a reasonable idea. Against the background of the development of cryptocurrency mining, such an investment can justify itself when there is a suitable room and access to inexpensive electricity. And even so, it is impossible to say for sure whether the system will have time to pay off and bring profit before it fails or the cryptocurrency exchange rate does not fall sharply, minimizing profitability.

In houses and apartments, asics are rarely installed. This is due to their too noisy operation.

Frequently Asked Questions